QUESTION: How often should I review my insurance
James M. Edwards, P.C.
1401 17th Street, Suite 330
Denver, CO 80202
FAX (303) 292-0924
ANSWER: The best answer is to do so whenever a significant
change occurs in your life (marriage, divorce, birth of a
child, a teenager now driving, a new car, change in economic
position) or at least once a year. Now that it is spring, and
spring cleaning time, it is probably a good idea to tune up
your insurance coverages just as you would tune up your bike
before going for a ride.
There are many types of insurance policies that cover us or our
businesses: homeowners, health care, vehicles, personal and
business liability, worker's compensation and so on. Some of
these may not be subject to your control. For example, health
insurance terms and conditions may be selected by the employer.
But others are up to us and it is a good practice to make sure
you have adequate, and not merely the legal minimum, coverages.
The time to find out is before the coverage is needed not when
it is too late to help.
When home value is rising, you should make sure that your
policy is sufficient to replace your home at the increased
costs and values. If your policy only covers what you paid for
the property some years ago, then you could be in for quite a
shock if a short circuit causes a fire that destroys your
Auto coverage used to be pretty simple. Now there are many
coverage options--deductibles, PPO plans, low income policies.
Many of these may not be right for you but may seem attractive
because of certain cost savings. Make sure you understand what
your rights and obligations will be in the event of an
accident. That $1,000 deductible may seem attractive until you
are not working because of an accident and cannot afford to pay
the $1,000 for medical care or repairs you need. With liability
policies, I have seen experts counsel people to carry only
the minimums because you can save money on the premiums and
"can always go to Bankruptcy Court" to get rid of any larger
debt. This is truly shortsighted and potentially very damaging
to you. The minimum limits required by law for property damage
are not enough to replace many of todayâ€™s cars. So if you
have the minimums, better be careful who you hit! Also,
bankruptcy may not be an option if you have equity in your
home, a good job, not much other debt or have a desire to
someday soon buy a house and get a mortgage.
It is true that rates are high in Colorado, but the way to save
money is not to cheat yourself on coverages important to you
and your family. Learn why rates are high and what can be done
individually and collectively, to lower those rates from the
source and not at the user level.
»Click Here To
Contact James M. Edwards
Initial consultations are available at no
JAMES M. EDWARDS, P.C. is a general practice law office with
an emphasis on personal injury matters and motor vehicle
claims. The office also handles traffic matters, criminal
matters, insurance questions, and consumer issues. The office
of JAMES M. EDWARDS, P.C. is located at 1401 17th Street, Suite
330, Denver, CO 80202, (303) 293-8191, Fax 292-0924. Initial
consultations are available at no cost.
Copyright 2008, James M. Edwards, P.C. All Rights Reserved.
No portion of this article may be reprinted or republished
without permission of the author. The article is meant to
advise the reader of general legal principles and trends. It is
not case specific legal advice. If you would like further
information, or would like to see a specific topic addressed in
a future article, please contact the author.